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Wells Fargo CEO sees wealth management as the 'biggest opportunity'
Wells Fargo Chief Executive Officer John Stumpf says wealth management is “a huge opportunity” for the bank going forward.
“The biggest opportunity is in wealth investment management — not that the business isn’t great. It could be a whole lot bigger,” Stumpf said at the Goldman Sachs Investors Conference in New York.
“We have about 11% of operational deposits,” Stumpf said. “But we only have 1%-2% of wealth in the country.” Stumpf noted that Wells has more than $1.7 trillion in customer assets — but Wells’ customers have an equal amount elsewhere.
On an annualized basis, the bank is earning $2.5 billion from its wealth management services. “It could be a number of factors times that.” Margins, he added, are 25% — an attractive rate.
Photo: Fortune Global Forum 2015